FRANKFURT -- Goodyear Tire & Rubber Co. needs three years to get its U.S. tire business back on track to healthier profits, CEO Robert Keegan told Germany's daily Frankfurter Allgemeine Zeitung in an interview.
In an advanced copy of its Wednesday edition, Keegan said Goodyear's European business was making better progress.
Goodyear managed to post a profit in North America and other regions in the second quarter, but the group hasn't posted a consolidated net profit since 2000.
Rising commodity prices for oil and rubber, which make up roughly 85 percent of its raw material costs, will pose additional problems, Keegan said.
In the second half, the Goodyear CEO expects raw material costs to increase by 5 percent to 7 percent, after only a 3 percent to 4 percent rise in the first six months of 2004.
Keegan also said that all of the company's operations would be reviewed for a potential disposal with the exception of its passenger and truck tire businesses and its chemicals activities.
"We're conducting talks currently," he said. "We have a whole range of activities that we can sell."